1) The Industrial Revolution, which had focused its attention on substitution of competition for the mediaeval regulations, that had previously controlled the production and distribution of wealth, led to growth of two system of thought:

1- Economic science

2- Socialism

a)Adam Smith

b)Malthus

c)Ricardo

d)John Stuart Mill

2-3) Facts of Industrial Revolution:

1- Wealth

2-Population

4) Decrease in rural population. Causes:

1- The destruction of the common-field system of cultivation

2- The enclosure, on a large scale, of common and waste lands

3- The consolidation of small farms into large

5) Agricultural advance. Cause-more scientific approach:

1- The breed of cattel

2- The rotation of crops

3- The steam-plough

4- Agricultural societies

6-7) Growth of industry. Causes:

1• Mechanical inventions in textile industry:

1-Spinning-jenny

2-Water-frame

3-Crompton's mule

4-Self-acting mule

• Most important:

1-Steam engine

2-Power-loom

2• Mechanical revolution in iron industry:

1- Invention of smelting pit-coal

2- Application of the steam-engine to blast furnaces

3• Improved means of communication:

1-Canal system

2-Roads

3-Railroad

•Results:

a) Increase in commerce and a sufficient supply of goods became the interest of the merchants to collect weavers around them in great numbers to get looms together in a work-shop, and to give out themselves to the workpeople

b) Substitution of factory system for domestic system

8) Revolution in distribution of wealth: rise in rent caused by social changes in country life:

1- Enclosure system

2- Consolidation of farms

3- Money invested in improvements

4- High price of corn

9) Social changes in manufacturing world:

The new class of great capitalist employers made enormous fortunes, they took little or no part personally in the work of their factories, their hundreds of workmen were individually unknown to them.

• Consequences:

1- Cash nexus substituted for the human tie

2- Trades-Unions began a fight

3- Class conflict

10) Misery of working people often caused by:

1- Condition of labour under the factory system

2- Rise of price

3- Sudden fluctuations of trade

•CONCLUSION•

The effects of the Industrial Revolution prove that free competition may produce wealth without producing well-being.